Green-e Energy Code of Conduct and Customer Disclosure Requirements Version 1.0

Transcription

1 Green-e Energy Code of Conduct and Customer Disclosure Requirements Version 1.0 I. Preamble... 2 II. Mission Statement... 2 III. Definitions... 3 IV. Ethical Guidelines... 7 V. Certification Categories... 9 VI. Verification of Certified Products VII. Customer Disclosure Requirements Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 1 of 39

2 I. PREAMBLE Green-e Energy, launched in 1997, is the leading voluntary certification and verification program that sets standards for renewable electricity-based products in three markets for renewable energy: renewable energy certificates (RECs), utility green pricing programs, and competitive market electricity products. This document governs Green-e Energy only, though Green-e also has a standard for certification and verification of greenhouse gas reductions sold in retail markets, called Green-e Climate. Green-e is a registered trademark of the Center for Resource Solutions (CRS). Creating environmentally preferable electricity services and products provides customers with choices that make a positive difference in the environment, encourages the development and deployment of clean renewable energy technologies, and opens exciting new market opportunities for entrepreneurs in the energy and climate change sectors. In order to realize this potential, and to maintain and improve customer confidence, companies transacting renewable energy products must provide customers with easily understood information about their products and services, and adhere to the highest standards of professionalism in business practices. Each participating company (Participant) transacting a Green-e Energy Certified Product (as defined below) agrees to abide by the standards reflected in this Code of Conduct and Customer Disclosure Requirements, and to cooperate with the Green-e Governance Board in ensuring that these standards are effective in providing customers information about environmentally superior services and products. Environmental performance is at the heart of the classification of electric generation technologies as environmentally preferable. The Green-e Governance Board (the Board) has adopted a definition for renewable energy primarily based upon existing law. In addition, the Board is committed to developing and incorporating improved emissions and other environmental performance standards. The Board anticipates that any substantive changes made to the Code of Conduct and Customer Disclosure Requirements will be done with the advice of generators and Participants selling Green-e Energy Certified Products, and changes will be made on a prospective basis. The content of the Code of Conduct and Customer Disclosure Requirements could also change to be consistent with changes in state and federal laws and regulations. II. MISSION STATEMENT Green-e Energy seeks to: 1. Bolster consumer confidence in the reliability of retail electricity products reflecting renewable energy generation. 2. Expand the retail market for electricity products incorporating renewable energy, including expanding the demand for new renewable energy generation. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 2 of 39

3 3. Provide consumers with clear information about retail renewable electricity products to enable them to make informed purchasing decisions. 4. Encourage the deployment of electricity and other retail products that minimize air pollution and reduce greenhouse gas emissions. III. DEFINITIONS Attribute: The descriptive or performance characteristics, including Environmental Attributes, of a particular generation resource. Certificate Retirement: Retirement occurs when a REC is used by the owner of the REC. Use of a REC may include, but is not limited to, (1) use of a REC by an end use customer, marketer, generator, or utility to comply with a statutory or regulatory requirement, (2) a public claim associated with the purchase of a REC by an end use customer, or (3) the sale of or public claim on any component attributes of a REC for any purpose. Once a REC is retired, it may not be sold, donated, or transferred to any other party. No party other than the owner may make claims associated with retired RECs. Customer Logo Use: Any and all uses of the Green-e Energy logo by Eligible Retail Customers, whether in advertising, public display or otherwise. Customer use of the Green-e Energy logo must be in accordance with all logo use requirements and the Customer Logo Use Agreement. Disaggregation (or Disaggregated): Separation of the Attributes of RECs from each other, usually to permit independent sale of the component Attributes (e.g. of CO2 as carbon offset). Double Counting: When the disaggregated attributes associated with a single MWh of generation are ultimately sold to or claimed by more than one consumer. Double counting may include, but is not limited to, any of the following: 1) When the same REC is sold by one party to more than one party, or any case where another party has a conflicting contract for the RECs or the renewable electricity; 2) When the same REC is claimed by more than one party, including any expressed or implied environmental claims made pursuant to electricity coming from a renewable energy resource, environmental labeling or disclosure requirements. This includes representing the energy from which RECs are derived as renewable in calculating another entity s product or portfolio resource mix for the purposes of marketing or disclosure; Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 3 of 39

4 3) When the same REC is used by an electricity provider or utility to meet an environmental mandate, such as an RPS, and is also used to satisfy customer sales under Green-e Energy; or 4) Use of one or more attributes of the renewable energy or REC by another party (see the Green-e Energy National Standard section on Fully Aggregated RECs for details). This includes when a REC is simultaneously sold to represent renewable electricity to one party, and one or more Attributes associated with the same MWh of generation (such as CO2 reduction) are also sold, to another party. Eligible Renewable Resources: Those resources that meet the eligibility criteria defined in the Green-e Energy National Standard. Eligible Retail Customers: Customers who purchase or generate enough Green-e Energy Certified Product to satisfy a certain percentage of their total annual electricity need from an eligible renewable resource product, on a per meter basis. (The percentage required is based on the size of the customer s electricity use. Please see Green-e Marketplace Logo Use Agreement for more detail). Eligible Renewable Energy Certificate Product: A retail REC product is eligible for Green-e Energy certification if it meets the conditions described in the Green-e Energy National Standard. Emission Allowance: A tradable authorization to emit a unit of pollution (e.g. one ton) issued or allocated to an electricity generation source by a local, state or federal agency that may be used for the purposes of demonstrating compliance with air pollution emission control obligations under cap and trade programs. Environmental Attributes: The descriptive or performance characteristics relating specifically to emissions or waste from a fixed amount of electricity generation, usually from a specific generating plant. Most often, Environmental Attributes represent the direct emissions to the air of criteria pollutants or greenhouse gases. Environmental Attributes may also represent the emission reductions attributed to a fixed amount of electricity generation from a specific generating plant, if these specific emissions are not subject to a mandatory emissions cap and trade program. Environmental Authority: Any regulatory authority or governing board having jurisdiction over the environmental effects related to an electric utility's electricity operations or of the disclosure of generation mix. Environmentally Superior Product: A renewable energy product that reflects 1) a greater proportion of renewable energy and 2) is sourced from facilities with lower emissions per kilowatt hour of SOx, NOx, and CO2 than system power. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 4 of 39

5 Fossil Resources: Electric generation using natural gas, oil, coal, or petroleum coke or other petroleum based fuels. Green-e Energy Certified Product: A Product comprised of a mix Eligible Renewable Resources being marketed and sold in conformance with the requirements of this Code. Green-e Logo: The certification marks registered and owned by the Center for Resource Solutions, consisting of the graphic design mark circle e and/or the words Green-e, that may be used by a company participating in Green-e Energy, Green-e Climate or Green-e Marketplace. For Green-e Energy participants, the logo should only be used in the manner described in Section VII.D of this document, as well as the Green-e Logo Use Guidelines, as the Green-e Energy logo. Green-e Governance Board (The Board): The Green-e Governance Board acts in an advisory role to the Center for Resource Solutions (CRS) on the policies of Green-e Energy. The Board meets approximately quarterly as a full board, and may convene additional meetings or meet in subcommittee as necessary. Green Pricing/Green Marketing: The practice of offering consumers an option to pay for the purchase of energy (usually renewable-based electricity), cleaner than what is otherwise available in the system mix. New Renewable Resource: Any eligible renewable facility beginning operation or repowered after January 1, 1997 as defined in the Green-e Energy National Standard. New Source Review: The regulation established under the 1990 Clean Air Act Amendments, whereby new sources of pollutant emissions must offset the emissions of neighboring sources in order to achieve no net gain in emissions in a given area. Null Electricity: Electricity that is stripped of its attributes. No specific rights to claim fuel source or environmental impacts are allowed for null electricity. Participant: As used in this document, Participant refers to the company, utility, electric services provider or broker that is selling or brokering a Green-e Energy Certified Product. Product: Under Green-e Energy, a product is defined by its resource mix (e.g. 60% wind, 38% biomass, 2% solar), generation location for its resources, and the geographic area in which it is sold. A Product is a mix of renewable electricity or RECs that are supported by eligible new renewable generation that conforms to the Program s resource content and emissions guidelines. A Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 5 of 39

6 product may include some non-renewable electricity such as system power so long as it conforms to Green-e Energy s resource content and emissions guidelines. Pricing variations that do not change a given product s supporting resource mix, SOx, NOx, or greenhouse gas emissions, do not constitute different products. One product may be sold in more than one state provided that the supporting resource content is the same in both states and the supply supporting the product sold in both states comes from the same supply pool. Renewable Energy Certificate (REC): An authorized document or other representation (electronic, paper, etc.) of the Attributes associated with the generation of a defined amount of electricity (usually one megawatt-hour [MWh]) at a renewable energy facility. The Attributes have been separated (or unbundled) from the commodity electricity and, as a result, the REC may be traded separate from the electricity. Each REC will embody different characteristics that vary depending on the generation facility. For the purposes of Green-e Energy, a REC must contain all of the environmental attributes associated with a unit of renewable generation, with the exception of cap and trade pollutants (see the Green-e Energy National Standard for more information). Renewable Portfolio Standard (RPS): A state or federal level policy that requires that a minimum amount (usually a percentage) of electricity supply provided by each supply company is to come from renewable energy. Specific Purchases: Transactions that are traceable to specific generation sources by an auditable contract trail or equivalent, such as a tradable commodity system, that provides commercial verification that the renewable energy used to support a Green-e Energy certified product has not been double-sold or double-counted. Supply: Specific purchases of power reflected in the product produced for ultimate sale or supporting the REC product produced for ultimate sale and sold over the electric grid. This Code does not intend to assert that products reflect an actual physical relationship between electrons generated at a particular facility and those used by a particular customer or supporting a REC purchased by a particular customer. System Power: The mix of electricity fuel sources (based where possible upon governmental reporting and record collection activities for electricity generation sources) that remains after taking into account imports, exports, and unit purchases and are not disclosed or marketed as specific purchases. Utility Regulatory Authority: Any utility regulatory authority or governing board having jurisdiction over the allocation of costs from the electricity generating facility. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 6 of 39

7 Vintage of generation: The vintage is the date that the electric generation associated with a MWh of electricity was measured by the system operator or utility meter at the generator site. Vintage of a generator: The vintage of a generator or generating facility is the date that the facility was placed into service. IV. ETHICAL GUIDELINES Each Participant wishing to use the Green-e Energy logo or to claim Green-e Energy certification for any of their power products agrees to do the following: 1) Conduct an annual independent verification of product sales and purchases according to the Green-e Energy Annual Verification Protocol. 2) Undergo biannual marketing compliance review to ensure that marketing materials comply with this Green-e Energy Code of Conduct Customer and Disclosure Requirements. 3) Provide customers with adequate and accurate information on the green product as defined in the Green-e Energy Code of Conduct and Customer Disclosure Requirements. 4) Disclose information regarding renewables contained in system power, but not make specific claims about the attributes of system power purchased as part of an electricity product. 5) Use the Green-e Energy logo only in compliance with the logo usage requirements and guidelines outlined in the contract under Use of Logo and in accordance with the Green-e Energy Code of Conduct and Customer Disclosure Requirements, including using the specified artwork and colors as indicated. 6) Use the Green-e Energy logo only in conjunction with products that meet all eligibility requirements outlined in the Green-e Energy National Standard and have been certified by Green-e Energy. 7) Sell renewable energy, greenhouse gas benefits or RECs associated with specific renewable energy generation only once; to take reasonable actions (inquiry and contractual commitments) to ensure that any wholesale renewable energy/ghg benefits/recs purchased for resale have not been sold to any other party; and to ensure that environmental attributes of renewable energy supporting such RECs have not been sold to any other party. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 7 of 39

8 8) Ensure by reporting agreements and other contractual obligations with generators that any emission reduction credits or emission allowances allocated to or otherwise received by the generator for the generation output that supports the energy product have been administered in a manner consistent with Green-e Energy National Standard section on Fully Aggregated Renewables. 9) Ensure by reporting agreements and other contractual agreements with generators that generation output that supports the energy product has not been used for compliance with any government procurement, renewable portfolio standard or other renewable energy requirement of local, state or federal government, except as provided for in the Green-e Energy National Standard. 10) Agree to use only environmental marketing claims in advertising that are factually based (and can be objectively verifiable to the extent technically possible) and: a. Be sufficiently clear and prominent to prevent deception; b. Not represent that customers are actually being delivered electrons from specific generation facilities; c. Not overstate environmental attributes or benefits, expressly or by implication; and d. Present comparative claims in a manner that makes the basis for the comparison sufficiently clear to avoid customer deception. 11) Notify customers and the Green-e Energy Governance Board annually if/when an eligible product does not meet its eligibility requirements and: a. Allow the customer the option of canceling the service without penalty if the product reflects or is supported by a lower renewable content than that for which they have contracted; b. If this change results in a product that does not meet threshold criteria, notify customers that this product is no longer certified and cease use of the Green-e Energy logo. c. Notify customers in writing if the Green-e Energy Certified product they are purchasing (1) loses Green-e Energy certification for any reason, or (2) the Participant decides to opt out of Green-e Energy, clearly state that the Green-e Energy Certified product they were purchasing is no longer Green-e Energy Certified; and (3) provide these customers with the Green-e Web site, and toll free number, (888) 63- GREEN, with instructions that the customer can find alternative Greene Energy Certified products through the Green-e Web site and toll-free number. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 8 of 39

9 V. CERTIFICATION CATEGORIES Please see Appendix C: Green-e Energy Certification Fee Schedule for certification fee information. A. Competitive Electricity Two categories of certification exist for regional competitive electricity products: Single Mix and Multiple Mix. A separate application and fee is required for each certified electricity product. A product is defined by its resource mix (e.g. 60% wind, 38% biomass, 2% solar), generation location for its resources, and the geographic area in which it is sold. 1. Regional Electricity Single Mix (Residential, Non-Residential and/or Wholesale): This category covers certification of one unique retail product mix to residential, commercial, and/or wholesale customers. The same unique product mix made up of eligible resources may be offered across multiple states, regions or service territories as long as the same resources and facilities are used and the product meets all geographic eligibility criteria outlined in the Green-e Energy National Standard. 2. Regional Electricity Multiple Mix (100 Non-Residential and/or Wholesale Mixes): This category covers certification of up to 100 unique mixes of eligible resources offered to commercial and/or wholesale customers only. Each mix can be used for an unlimited number of non-residential sales. Resources can be sourced from facilities across multiple states, regions or service territories as long as each individual mix meets the geographic eligibility criteria outlined in the Green-e Energy National Standard. It is the responsibility of the Participant to ensure that each transaction meets the criteria. Green-e Energy will verify all transactions during its annual verification process, which takes place the year after the sale. If it is determined through the verification process that a mix does not meet the geographic eligibility criteria, it will be the responsibility of the Participant to take corrective action to bring this transaction into compliance with the Green-e Energy National Standard. B. Renewable Energy Certificates A Renewable Energy Certificate (REC) product is one that only includes the environmental and social attributes of RECs associated with renewable energy generation and does not include the delivery of electricity. This type of product is purchased by a customer from someone other than their electricity provider. REC certification categories are as follows: Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 9 of 39

10 1. REC Single Mix Product (Residential, Non-Residential, and Wholesale): The base fee covers certification of one unique retail REC product mix consisting of eligible resources sold to residential and/or commercial customers. 2. REC Multiple Mix Product (100 Non-Residential Mixes and/or Wholesale): The base fee covers certification of up to 100 retail REC mixes of eligible resources offered to commercial customers only. In addition, there is a third category, for REC Brokers: 1. REC Broker Certification (Unlimited Transaction Mixes): The base fee covers certification of brokered transactions between generators and enduse customers only. C. Green Pricing Programs Certification of utility green pricing programs is available nationwide for renewable energy products that are offered in regulated markets and meet Green-e Energy program requirements. Green-e Energy allows Hub & Spoke green pricing programs (those with one supplier serving the same product to multiple member utilities) to qualify under a single product certification. Please see the Green-e Energy National Standard or contact Green-e staff for qualification details. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 10 of 39

11 VI. VERIFICATION OF CERTIFIED PRODUCTS A. Overview All Participants must conduct an annual verification process to substantiate product purchases, sales, and claims. The vendor must employ an independent certified public accountant or certified internal auditor to conduct this verification in accordance with the procedures set forth in the Green-e Energy Verification Process Audit Protocol. The results of the verification must be submitted the Center for Resource Solutions in late May or early June. The exact due date for this submission will be determined on a year to year basis and will be communicated to Participants well in advance. For more information, see section D, below. B. Components of Verification The verification protocol requires Participants offering a Green-e Energy Certified Product to demonstrate through the use of company contracts, invoices and billing statements that: 1) The Participant generated or procured RECs or renewable energy in quantity and type sufficient to meet customer sales for each specific product; 2) Power or RECs were generated or purchased from eligible new renewable energy generators; 3) Information provided to customers on the Product Content Label is accurate; 4) By generator attestation, the electrical energy associated with RECs was delivered into the electric power system or consumed at the site of generation by an end-user of electricity and was not marketed or otherwise represented as renewable energy; 5) By generator and Participant attestation, all the attributes of the renewable energy were kept aggregated and not sold off separately; 6) By generator and Participant attestation, generation output which supports the product has not been used for compliance with any procurement, renewable portfolio standard or other renewable energy requirement of local, state or federal government, except as provided for in the Green-e Energy National Standard; Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 11 of 39

12 7) The RECs or renewable energy purchased and sold by the Participant were not sold to more than one customer; 8) The PUC or other appropriate regulatory body in the state where the electricity associated with a REC was sold was given notification that the environmental attributes of the electricity were sold as a REC, and there was no use of mandated renewables; 9) By attestation, the generator and/or Participant have no knowledge of double counting, double selling or double claiming of the renewable energy product; and 10) The Green-e Energy Certified product only contained renewables generated in the calendar year in which the product was sold, the first three months of the following calendar year, or the last 6 months of the prior calendar year. C. Administrative Issues 1) Verification will take place on an annual, calendar year basis. 2) Verification will require that the Participant fill out worksheets and attestations, obtain attestations from the parties supplying it with RECs and/or renewable electricity and other supporting documents, and hire an independent auditor or certified internal auditor to verify the accuracy of the information. The auditor will provide a report to CRS testifying to the results of the audit. 3) All attestations used in Green-e Energy verification must be Green-e Energy forms that have been updated by Green-e Energy on or after January 1, These forms are posted on the Green-e Web site, at 4) Data for verification of non-eligible product claims, prices or contract conditions may be requested of a Participant if complaints relevant to this Code of Conduct and Customer Disclosure Requirements are received by the Board pertaining to a Participant s product(s) and/or professional conduct. 5) If a product or the product s certification contract is terminated, the product is still required to undergo verification for the sales year(s) it was certified. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 12 of 39

13 D. General Overview of Annual Verification Timeline 1) Early in the year immediately following the sales year being verified, Green-e Energy will provide annual verification materials to all Participants. 2) By the end of February, Participants must submit an unaudited report of all Green-e Energy certified transactions conducted in the previous year. The form for this will be provided in January. 3) Throughout the spring, Green-e Energy staff will provide support for all Participants undergoing the verification process and for the auditors they have hired. 4) Completed and audited verification materials will be due to Green-e Energy in late May or early June, as defined in January mailing. Only in rare circumstances will extensions be granted, and typically for no more than a month. 5) If a Participant does not submit completed and audited materials by the due date, and has not been granted an extension by Green-e Energy, the Participant will be charged late fees as described in the applicable sales year s Annual Verification Submission Timeline and Deadlines document (provided in advance to Participants) until the completed and audited materials are submitted. Payment of all invoiced late fees is a necessary part of compliance with the verification requirements. If after 30 calendar days the materials have not been submitted, the certified product(s) for which the materials are outstanding will be immediately decertified. A Participant selling one or more products that have failed to submit completed and audited materials and have consequently been decertified will still be obligated to provide complete and audited verification materials for sales made until the date of decertification. 6) The exact dates, deadlines and additional aspects of the verification timeline will be made public as soon as they are finalized for each sales year and will be posted on the Green-e Web site, at They will also be provided to Participants well in advance of the deadline for submission of verification materials. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 13 of 39

14 VII. CUSTOMER DISCLOSURE REQUIREMENTS To maintain the integrity of the Green-e brand, CRS requires that Participants meet Green-e Energy standards for environmental quality and consumer disclosure outlined in the Green-e Energy National Standard and the Green-e Energy Code of Conduct and Customer Disclosure Requirements. Participants must provide their customers factual, and in some cases standardized, information about their power products so that customers have sufficient information to make informed purchasing decisions. This section outlines a Participant s responsibilities to disclose product information to all customers prior to their purchase of a Green-e Energy Certified renewable electricity product and in the case that their purchase changes during the term of their purchase agreement. This section also outlines appropriate uses of the Green-e Energy logo, language for describing Green-e Energy and language for describing the Participant s relationship with CRS and Green-e Energy. Sections A, B, C, D, E, F and J apply to products sold to all customer types. Sections G, H, I, K, and L apply only to those products sold to residential customers. While Green-e Energy does not require Participants selling a product to non-residential customers to provide customers with a standardized Price, Terms and Conditions document as outlined in section G, we do expect this information to be provided to non-residential customers as a part of their contract. Each Participant is required to follow the requirements outlined in this document in order for their product(s) to remain Green-e Energy Certified. For products marketed to residential customers, CRS will verify that each Participant is following these requirements through a bi-annual review of the Participant s marketing materials in February and August. If a Participant is found to be out of compliance with this document, the Participant will either have to revise its marketing materials to meet the requirements of this document or immediately desist using the Green-e Energy logo or making reference to Green-e Energy in any of its marketing materials for this product. While products that are marketed only to non-residential customers do not undergo Marketing Compliance Review, if a Participant is found to be out of compliance, that Participant may be subject to decertification of its products. A. General Language Guidelines This section applies to products sold to all customer types both residential and non-residential. While non-residential products are not subject to Marketing Compliance Review, a Green-e Energy determination that a Participant is not following the requirements outlined in this section is grounds for de-certification. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 14 of 39

15 All marketing claims made about a particular product must be factually based. Each Participant should adhere to the following general guidelines for all marketing materials produced: 1) Be clear and prominent to prevent deception. Do not represent or imply that electrons from a specific facility are directly delivered to a customer. 2) Do not overstate environmental attributes or benefits, expressly or by implication. Do not represent or imply that purchasing the product will reduce emissions such as sulphur dioxide or nitrogen oxides, unless company has secured those emissions allowances and is conveying them to the end-use customer (see the Green-e Energy National Standard for more information). 3) Only compare a product s generation sources to other generation sources in a clear, factual and non-deceptive way. 4) Do not make statements like, Product X is made from 100% renewable resources such as wind, solar, geothermal, low-impact hydro and biomass, unless the product contains specific purchases of all of those resources. Participants may describe their product mix and may define renewable resources, but should always be clear and differentiate the type of power that is actually contained in their specific products. 5) Do not show pictures of renewable resources that are not contained in your product mix. For example, do not show a picture of a wind turbine if your product contains 100% landfill gas. 6) Do not make claims about renewable power that is found in the system mix. While renewables in system power should be included in the Product Content Label, Participants may not make claims about the renewable content found in system power. 7) When advertising both certified and non-certified products on the same marketing piece, clearly differentiate between which products are Green-e Energy Certified and which products are not Green-e Energy Certified. B. Communicating the Emissions Avoidance Value of a Green-e Energy Certified Product Green-e Energy Certified renewable energy products must be denominated in megawatt-hours (MWh) or kilowatt-hours (kwh). Consistent with this policy, Participants can market their certified products as instruments to address the environmental impacts associated with the consumption of electricity. One aspect of these impacts is the indirect carbon dioxide emissions arising from the purchase of electricity generated through the combustion of fossil fuels, classified as Scope 2 emissions by the World Resources Institute s Greenhouse Gas Protocol. The explicit marketing of Green-e Energy Certified renewable energy products as a means to reduce or offset emissions from anything other than the consumption of electricity purchased from the grid shall not be permitted. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 15 of 39

16 Offsetting emissions from other sources must be made with greenhouse gas emissions reductions held to a different set of additionality criteria. This can be accomplished with products certified by Green-e Climate. For further information about Green-e Climate, including how to begin offering a Green-e Climate Certified product, please visit or contact Green-e Climate staff at climate@green-e.org or Please note that this policy does not preclude Green-e Energy participants from making environmental equivalency claims associated with the renewable energy products that they sell (e.g. choosing 100% renewable energy over your regular electric service has an environmental benefit equivalent to taking X # of cars off the road for one year or recycling X # of aluminum cans ). Participants shall not use these claims to suggest the purchase of a Green-e Energy Certified product can be used to directly address the emissions associated with activities other than electricity consumption, but rather to frame the environmental benefit of purchasing renewable energy in a manner that the average consumer will better understand. The first step in making such claims is often a conversion to tons of CO2 emissions avoided. The maximum conversion factor that Green-e Energy will permit for use in such carbon-related equivalency claims will be based on the non-baseload output emission rate of electricity generation of the NERC region in which the renewable MWh is generated 1. In cases where a Participant does not explicitly provide upfront geographic disclosure of a Product s supply to consumers, the Default National Rate (1, lbs of CO2/MWh) is the maximum rate that may be used. This national figure represents the non-baseload output emission rate of electricity generation in the NERC region with the lowest of such a rate 2. Green-e Energy recognizes that Participants may want to use another methodology to make these conversions in certain cases. Participants can only use rates higher than non-baseload output emission rate for the relevant NERC region of generation with the express pre-approval from the Center for Resource Solutions. In cases where such exceptions are granted, it will be required that in all marketing materials displaying such carbon equivalency claims that the source of the calculation methodology used is appropriately cited. Participants may, however, use rates 1 Please note that this closely resembles the guidance being developed by the US EPA on this issue. The primary difference between the Green-e Energy methodology for such carbon equivalency conversions and that of the comparable EPA guidance is the scale of the regions chosen to generate the regional emissions factors. For carbon equivalency conversions, Green-e Energy has elected to use NERC regions for these regional boundaries. This is consistent with the geographic eligibility policy for electricity products set forth in the Green-e Energy National Standard, as established through stakeholder input and approved by the Green-e Governance Board. Other programs that specifically work with end-use consumers in communicating or recognizing their renewable energy purchases may require consumers to use a separate methodology for deriving the carbon value of renewable energy purchases, including using different conversion factors or calculating rates by different regions of generation. End-use consumers will need to work directly with these separate programs to determine what environmental claims are permitted under their respective guidelines. 2 Data currently sourced from egrid2007 Version 1.0, October Green-e Energy staff will update this number as new data becomes available. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 16 of 39

17 below these maximum levels without the need to seek pre-approval from the Center for Resource Solutions. Regardless of the methodology and/or emission rates used, all Participants should be able to provide their carbon calculation methodology to substantiate stated environmental claims upon request. For Participants subject to the twice-annual Marketing Compliance Review process, such an evaluation of stated environmental claims will be conducted during these scheduled events, and more frequently if deemed necessary by Green-e Energy staff. C. Three Month Check-In This section applies to products sold to all customer types both residential and nonresidential. Initial compliance with Green-e Energy requirements will be checked prior to the formal processes of annual verification and marketing compliance review (in the case of residential products). This check-in will take place after approximately three months of participation in Green-e Energy. The evaluation will consist of the follow items: A review of the Participant s Web site to check for compliance with the Greene Energy Code of Conduct and Customer Disclosure Requirements. Participants will be required to send in an un-audited report of any Green-e Energy Certified sales made thus far and how the Participant plans to acquire the supply to meet this demand. An optional conference call with Green-e Energy staff to answer any Green-e related questions that may have arisen after spending three months in the program. D. Green-e Energy Logo Use This section applies to products sold to all customer types, both residential and nonresidential. While non-residential products are not subject to Marketing Compliance Review, a Green-e Energy staff determination that a Participant is not following the requirements outlined in this section is grounds for de-certification. CRS encourages the use of the Green-e Energy logo, so customers can easily identify your product as environmentally superior and independently verified. This section outlines logo use specifications for companies marketing Green-e Energy Certified products. The Green-e Energy Code of Conduct and Customer Disclosure Requirements specifies that Participants selling a Green-e Energy Certified product only use the Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 17 of 39

18 Green-e Energy logo in compliance with the logo usage standards and guidelines outlined below and using the specified artwork and colors as indicated. Violators of the usage standards and guidelines can lose their eligibility to use the Green-e Energy logo. Further specifications and logo use requirements can additionally be found in the Green-e Logo Use Guidelines, available at 1. Logo Information The Green-e Energy logo will be sent to Participants to use on their print and online materials. The color specifications for the logo are: green (C:100, M:5, Y:100 K:0) with a white background (not transparent), and black type (K:100). The Green-e Energy logo will be provided to a Participant once a complete and signed agreement is received by CRS. 2. Logo Text CRS requires that each Green-e Energy Participant use the Green-e Energy Logo provided by CRS without any additions or modifications as discussed in the Green-e Logo Use Guidelines. 3. Placement For marketing materials that promote more than one product, the logo should be placed so that it is clearly related only to that product or products that are certified under Green-e Energy. 4. Green-e Energy Logo Use on Web Sites Whenever the Green-e Energy logo is featured on a Web site, the logo should be a direct link to the Green-e Web site ( E. Language Options for Describing Green-e Energy This section applies to products sold to all customer types both residential and nonresidential. While non-residential products are not subject to Marketing Compliance Review, a Green-e Energy staff determination that a Participant is not following the requirements outlined in this section is grounds for de-certification. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 18 of 39

19 Following are options for describing Green-e Energy modifications to descriptions must be pre-approved by Green-e Energy (see section 2. Approval, below). This language must be present on the Product Content Label; Price, Terms and Conditions; and the Participant s Web site. All other marketing materials must either include one of the following language options for describing Green-e Energy or the Green-e Web site ( 1. Language Options Green-e Energy certifies that [product name] meets the minimum environmental and consumer protection standards established by the non-profit Center for Resource Solutions. For more information on Green-e Energy certification requirements, call GREEN or log on to The Green-e Energy logo helps consumers easily identify environmentally superior renewable energy options. For more information on Green-e Energy certification requirements, call GREEN or log on to Green-e Energy was established by the non-profit Center for Resource Solutions to provide information and an objective standard for consumers to compare renewable energy options, and to verify that consumers get what they pay for. For more information on Green-e Energy certification requirements, call GREEN or log on to [Company] voluntarily accepts and supports the Green-e Energy Code of Conduct and Customer Disclosure Requirements and independent verification methods. Green-e Energy assures customers that Participants portray their Green-e Energy Certified renewable energy option accurately. The Green-e Energy logo shown here can only be used with renewable energy options like this one that promise to meet Green-e Energy s high standards of environmental and marketing integrity. For more information on Green-e Energy certification requirements, call GREEN or log on to When you see the Green-e Energy logo, it means: The renewable energy option contains only new renewable resources; The sources of energy supplying the renewable energy option are independently verified by Green-e Energy, operated by the non-profit Center for Resource Solutions; The purchaser of a Green-e Energy Certified renewable energy option is the sole "owner" of the environmental attributes of a specific megawatt hour (MWh) of energy added to the grid. Independent verification ensures that no MWh are double-counted, and The company offering the certified renewable energy option agrees to abide by the Green-e Energy Code of Conduct and Customer Disclosure Requirements governing its ethical treatment of customers. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 19 of 39

20 For more information on Green-e Energy certification requirements, call GREEN or log on to 2. Approval The Center for Resource Solutions must review any press release or product marketing material that departs from the pre-approved language for describing Green-e Energy before it is issued. We will make this a quick turn-around review, but need to confirm that the Program is accurately portrayed. We are not requesting a review of marketing materials that use the pre-approved language, but would appreciate receiving new materials as they become available. Please send us copies of all your press releases and marketing materials. F. Product Content Label This section applies to products sold to all customer types both residential and non-residential. While non-residential products are not subject to Marketing Compliance Review, Green-e Energy staff determination that a Participant is not following the requirements outlined in this section is grounds for de-certification. Green-e Energy requires companies offering a Green-e Energy Certified product to provide customers of the Green-e Energy Certified product with two Product Content Labels annually a Prospective Product Content Label and a Historic Product Content Label. These two labels can be contained in the same document, and this requirement can be met through the use of a newsletter, annual report, or a similar document. It does not need to be done through a separate, independent mailing. 1. Prospective Product Content Label The Prospective Product Content Label includes the projected renewable energy fuel mix for the coming or current year and: a. Should be available to customers on the Participant s Web site prior to sign-up. Customers should be able to click through the Prospective Product Content Label before being able to submit their subscription request; and b. Should be sent to new customers within 60 days of enrollment as part of their welcome packet ; c. If a Participant offers customers contracts to purchase the Green-e Energy Certified product over time or automatic renewals of their Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 20 of 39

21 purchase, the Prospective Product Content Label for current year should be sent to all existing customers by June 30 of each year. Green-e Energy will confirm this during the August Marketing Compliance Review (see Section I); and d. If a Participant offers customers contracts to purchase the Green-e Energy Certified product over time or automatic renewals of their purchase, the Product Content Label should be sent to all such existing customers any time that the Green-e Energy Certified product s mix changes substantially, including if the type or proportion of renewable resources changes. 2. Historic Product Content Label The Historic Product Content Label includes the renewable energy fuel mix delivered to customers for the previous year. This should be sent to all customers by June 30 th of each year regardless of whether the product mix has changed from the year prior. Proof that the Historic Product Content Label has been distributed will be required as part of the August Marketing Compliance Review (see Section I). 3. For Green Pricing Products For utilities offering a Green Pricing Product, the Prospective and Historic Product Content Labels must be sent to all customers, including those not purchasing the Green-e Energy Certified option. These two labels can be contained in the same document, and this requirement can be met through the use of a newsletter, annual report or the like. It does not need to be done through a separate, independent mailing. 4. Product Content Label Format The format of the Product Content Label should follow any applicable state guidelines, but must include at a minimum: a. The resources in the renewable energy product with fuel type percentages and geographic disclosure of facility location(s) by state (or Canadian Province if applicable). Participants selling RECs may state the geographic disclosure as National in the Prospective Product Content Label, but must specify geographic location of resources by state in the Historical Product Content Label; b. The percentage of the customer s electricity use the product represents or, for block products, the size of the block in kilowatt hours; Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 21 of 39

22 c. The comparative mix of the customer s default electricity mix (For Green Pricing programs, this should not be the regional power pool mix, but what the customer would have otherwise received from the utility); d. Customer service contact information; and e. The Green-e Energy logo, the Green-e Energy disclosure language, the Green-e toll free number and Web site. In the case where a state does not have a mandated format for a Product Content Label or other fuel source disclosure, Participants should follow the default Product Content Label format for blended products or block products as provided on the following pages. Alternative Product Content Label formats should be reviewed by Green-e Energy staff for approval in advance of their distribution to customers. 5. Additional Specifications for Product Content Labels a. For the footnote, The average home in the United States uses 900 kwh per month. [Source: U.S. EPA], Participants may opt to list the electricity usage in the average home in the state or region in which they are marketing the product instead of the national average. The geographic reference and data source must be given. b. The supplier will not list any renewable resources that are not in their product. c. The historic disclosure must break down the geographic location of all generation resources from which certificates were purchased by state (or Canadian Province, if applicable) and percentage. For RECs: Onetime purchases, such as a point-of-purchase sale, do not require historic disclosure, but must disclose the actual resources sold to the customer. d. For footnotes pertaining to the comparative mix of resources supplying the region, the source must be given. Green-e Energy Code of Conduct and Customer Disclosure Requirements Page 22 of 39